Market Overview:
The pharmaceutical traceability market consists of solutions and services that enable manufacturers and distributors to maintain an unbroken chain of custody throughout the distribution cycle. Pharmaceutical traceability helps to reduce counterfeiting, identify expired and stolen drugs, monitor environmental conditions, and improve supply chain management and logistics. It employs technologies such as barcodes, RFID and blockchain to track and trace drugs throughout the supply chain from raw material procurement to the end consumer.
The pharmaceutical traceability market is estimated to be valued at US$ 4.3 Bn or Billion in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the major trends driving growth in the pharmaceutical traceability market is increasing regulatory compliance requirements. Stringent regulations related to drug serialization, authentication, and tracking are being implemented by regulatory bodies around the world in order to curb the increasing issue of counterfeit drugs. For instance, the U.S. Drug Supply Chain Security Act (DSCSA) mandates implementation of interoperable traceability systems by pharmaceutical manufacturers and distributors. Additionally, the 2019 EU Falsified Medicines Directive also requires serialization and traceability measures for drugs in the European market. Such regulations are boosting adoption of traceability solutions in the pharmaceutical industry.
Porter’s Analysis
Threat of new entrants: Low entry barriers like capital requirements make threat of new entrants low. However, strict regulations by authorities pose a challenge.
Bargaining power of buyers: Buyers have high bargaining power due to presence of multiple pharmaceutical supply chain players. They can negotiate on price and quality.
Bargaining power of suppliers: Suppliers have moderate bargaining power due to availability of substitutes and dependence of buyers on specific raw materials.
Threat of new substitutes: Threat of substitutes is moderate as pharmacies are shifting to blockchain and RFID technologies for traceability.
Competitive rivalry: Intense due to presence of global as well as regional players.
SWOT Analysis
Strength: Technological expertise, large customer base, global presence. Weakness: High initial investments, complex technological integrations.
Opportunity: Emerging economies adoption, government mandates favoring traceability. Threats: Data privacy & security concerns, competitive pricing pressure.
Key Takeaways
The Global Pharmaceutical Traceability Market Size is expected to witness high growth, exhibiting CAGR of 10% over the forecast period, due to increasing regulatory compliance for drug traceability across regions. Stringent laws are enacted to verify authentic medicines and curb proliferation of medical counterfeits in various countries.
Regional analysis: North America dominated the pharmaceutical traceability market in 2023 and is projected to maintain its lead over 2023-2030. Higher healthcare spending and stringent regulations like the DSCSA drug supply chain security act drive significant market opportunities in the region. Asia Pacific exhibits the fastest growth rate owing to large patient population and growing generic drug manufacturing in nations like India and China.
Key players operating in the pharmaceutical traceability market are SAP SE,Oracle Corporation,IBM Corporation,Microsoft Corporation,SAS Institute Inc.,Infor,JDA Software,TraceLink,GS1,Owens & Minor. These players are investing in AI and blockchain based solutions to consolidate their market presence. Partnerships with pharmaceutical companies are helping them capture additional market share.
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